Post-Market Laggard: Juniper Networks (JNPR)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Juniper Networks ( JNPR) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Juniper Networks as such a stock due to the following factors:

  • JNPR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $128.4 million.
  • JNPR is down 7.6% today from today's close.

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More details on JNPR:

Juniper Networks, Inc. designs, develops, and sells products and services for high-performance networks worldwide. The company operates in two segments, Platform Systems Division and Software Solutions Division. JNPR has a PE ratio of 26.7. Currently there are 13 analysts that rate Juniper Networks a buy, no analysts rate it a sell, and 13 rate it a hold.

The average volume for Juniper Networks has been 6.3 million shares per day over the past 30 days. Juniper has a market cap of $11.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.13 and a short float of 1.4% with 1.64 days to cover. Shares are up 8.3% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Juniper Networks as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although JNPR's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 2.46, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • JUNIPER NETWORKS INC has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JUNIPER NETWORKS INC increased its bottom line by earning $0.86 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus $0.86).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 21.5% when compared to the same quarter one year prior, going from $91.00 million to $110.60 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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